The prices of oil and natural gas continue to fluctuate but it seems that at one point or another, it is a good idea to incorporate some of each into the investment portfolio. These resources are available in limited supply and despite the clean energy movement, many economies are still based on either or both of these commodities. Therefore, diversifying the investment portfolio to include gas and oil is a smart idea.
Natural gas stocks have recently been on the rise, while the price of crude oil has declined. Despite this situation, the large hedge funds continue to have a great deal of short positions against the commodity gas. Experts advise that investors go long when it comes to natural gas.
Oil has recently undergone a big selloff, resulting in a number of large oil companies being oversold. This has resulted in bargain-basement prices for some oil stocks. ConocoPhillips in particular is inexpensive from both a reserve and production perspective at the moment. In terms of market value, ConocoPhillips is the seventh largest major oil company in the world. Successful investors like George Soros and Warren Buffett are large shareholders.
Though natural gas is not as cheap as it was several months ago, its price will continue to rise, so experts say it is still a good time to make a purchase. A hurricane hitting the Gulf of Mexico would cause natural gas to make a huge rally. Hurricane season is upon us, so some careful tracking of the weather reports may be necessary.
Increasing worldwide population only serves to raise the level of demand for oil and gas. With no widespread energy alternatives yet in place, these two commodities are safe bets from an investment perspective. As we enter the next decade, the supply will likely be nowhere near the demand, which means share values will increase even further.
I'll Personally Email You
For just 15 minutes a week, I'll teach you everything there is to know about investing in mining companies. Plus, I'll include free guides on building a passive income, preparing for inflation, getting out of debt fast, and finding real financial security.
Plus, if you ever want to talk or ask any questions, I'll respond personally -- usually within an hour. Oh, and all of this is free. Just sign up right now:
investing, Natural Gas, oil drilling

Leave a comment
You must be logged in to post a comment.